Mortgage Demand Falls Further As Interest Rates Soar To July Highs

Joe Raedle | Getty Images After retreating earlier this month, mortgage rates began to rise sharply again to their highest level since mid-July. This caused the demand for mortgages to fall even further. The overall volume of mortgage applications fell 3.7% last week compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Sales volume was 63% lower than the same week a year ago. The average contract rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.80% from 5.65%, with units increasing to 0.71 from 0.68 (including origination fee ) for loans with a 20% reduction. payment. That figure was 3.11% a year ago. “Mortgage rates and Treasury yields rose last week as Federal Reserve officials signaled that short-term interest rates will remain higher for longer. Mortgage rates have been volatile over the past month, rising between 5.4% and 5 .8%,” said Joel Kan, an MBA associate. vice president of economic and industry forecasting. As a result, refinancing demand, which is highly sensitive to weekly interest rate movements, fell another 8% for the week and was 83% lower than the same week a year ago. The refinancing share of mortgage activity fell to 30.3% of total applications from about 66% a year ago. Home purchase mortgage applications fell 2% for the week and were 23% lower than the same week a year ago. “Purchase applications have declined in eight of the past nine weeks as demand continues to shrink due to higher interest rates and a weaker economic outlook,” Kan said. “However, rising inventory and slower home price growth could potentially bring some buyers back into the market later this year.” House prices are still well above last year’s levels, but fell by 0.77% from June to July. It was the first monthly decline in nearly three years, according to Black Knight, a mortgage software, data and analytics company. While the drop may seem small, it is the largest one-month price decline since January 2011. It is also the second-worst July performance dating back to 1991, behind the 0.9% drop in July 2010, during during the Great Depression. Given the recent volatility in mortgage rates, the gap between jumbo and conforming loans has widened again. Jumbos, which carried higher interest rates because of the size of the loans, are now 48 basis points lower than conforming loans. This spread exceeded 50 basis points in July. This is likely because jumbos are not backed by the government, which has a tighter risk tolerance, but are held on bank balance sheets. Banks are currently desperate for mortgage business.

title: “Mortgage Demand Falls Further As Interest Rates Soar To July Highs Klmat” ShowToc: true date: “2022-11-19” author: “Amy Tripp”

Joe Raedle | Getty Images After retreating earlier this month, mortgage rates began to rise sharply again to their highest level since mid-July. This caused the demand for mortgages to fall even further. The overall volume of mortgage applications fell 3.7% last week compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Sales volume was 63% lower than the same week a year ago. The average contract rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.80% from 5.65%, with units increasing to 0.71 from 0.68 (including origination fee ) for loans with a 20% reduction. payment. That figure was 3.11% a year ago. “Mortgage rates and Treasury yields rose last week as Federal Reserve officials signaled that short-term interest rates will remain higher for longer. Mortgage rates have been volatile over the past month, rising between 5.4% and 5 .8%,” said Joel Kan, an MBA associate. vice president of economic and industry forecasting. As a result, refinancing demand, which is highly sensitive to weekly interest rate movements, fell another 8% for the week and was 83% lower than the same week a year ago. The refinancing share of mortgage activity fell to 30.3% of total applications from about 66% a year ago. Home purchase mortgage applications fell 2% for the week and were 23% lower than the same week a year ago. “Purchase applications have declined in eight of the past nine weeks as demand continues to shrink due to higher interest rates and a weaker economic outlook,” Kan said. “However, rising inventory and slower home price growth could potentially bring some buyers back into the market later this year.” House prices are still well above last year’s levels, but fell by 0.77% from June to July. It was the first monthly decline in nearly three years, according to Black Knight, a mortgage software, data and analytics company. While the drop may seem small, it is the largest one-month price decline since January 2011. It is also the second-worst July performance dating back to 1991, behind the 0.9% drop in July 2010, during during the Great Depression. Given the recent volatility in mortgage rates, the gap between jumbo and conforming loans has widened again. Jumbos, which carried higher interest rates because of the size of the loans, are now 48 basis points lower than conforming loans. This spread exceeded 50 basis points in July. This is likely because jumbos are not backed by the government, which has a tighter risk tolerance, but are held on bank balance sheets. Banks are currently desperate for mortgage business.

title: “Mortgage Demand Falls Further As Interest Rates Soar To July Highs Klmat” ShowToc: true date: “2022-12-08” author: “Loni Patrick”

Joe Raedle | Getty Images After retreating earlier this month, mortgage rates began to rise sharply again to their highest level since mid-July. This caused the demand for mortgages to fall even further. The overall volume of mortgage applications fell 3.7% last week compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Sales volume was 63% lower than the same week a year ago. The average contract rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.80% from 5.65%, with units increasing to 0.71 from 0.68 (including origination fee ) for loans with a 20% reduction. payment. That figure was 3.11% a year ago. “Mortgage rates and Treasury yields rose last week as Federal Reserve officials signaled that short-term interest rates will remain higher for longer. Mortgage rates have been volatile over the past month, rising between 5.4% and 5 .8%,” said Joel Kan, an MBA associate. vice president of economic and industry forecasting. As a result, refinancing demand, which is highly sensitive to weekly interest rate movements, fell another 8% for the week and was 83% lower than the same week a year ago. The refinancing share of mortgage activity fell to 30.3% of total applications from about 66% a year ago. Home purchase mortgage applications fell 2% for the week and were 23% lower than the same week a year ago. “Purchase applications have declined in eight of the past nine weeks as demand continues to shrink due to higher interest rates and a weaker economic outlook,” Kan said. “However, rising inventory and slower home price growth could potentially bring some buyers back into the market later this year.” House prices are still well above last year’s levels, but fell by 0.77% from June to July. It was the first monthly decline in nearly three years, according to Black Knight, a mortgage software, data and analytics company. While the drop may seem small, it is the largest one-month price decline since January 2011. It is also the second-worst July performance dating back to 1991, behind the 0.9% drop in July 2010, during during the Great Depression. Given the recent volatility in mortgage rates, the gap between jumbo and conforming loans has widened again. Jumbos, which carried higher interest rates because of the size of the loans, are now 48 basis points lower than conforming loans. This spread exceeded 50 basis points in July. This is likely because jumbos are not backed by the government, which has a tighter risk tolerance, but are held on bank balance sheets. Banks are currently desperate for mortgage business.

title: “Mortgage Demand Falls Further As Interest Rates Soar To July Highs Klmat” ShowToc: true date: “2022-11-07” author: “Patricia Justus”

Joe Raedle | Getty Images After retreating earlier this month, mortgage rates began to rise sharply again to their highest level since mid-July. This caused the demand for mortgages to fall even further. The overall volume of mortgage applications fell 3.7% last week compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Sales volume was 63% lower than the same week a year ago. The average contract rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.80% from 5.65%, with units increasing to 0.71 from 0.68 (including origination fee ) for loans with a 20% reduction. payment. That figure was 3.11% a year ago. “Mortgage rates and Treasury yields rose last week as Federal Reserve officials signaled that short-term interest rates will remain higher for longer. Mortgage rates have been volatile over the past month, rising between 5.4% and 5 .8%,” said Joel Kan, an MBA associate. vice president of economic and industry forecasting. As a result, refinancing demand, which is highly sensitive to weekly interest rate movements, fell another 8% for the week and was 83% lower than the same week a year ago. The refinancing share of mortgage activity fell to 30.3% of total applications from about 66% a year ago. Home purchase mortgage applications fell 2% for the week and were 23% lower than the same week a year ago. “Purchase applications have declined in eight of the past nine weeks as demand continues to shrink due to higher interest rates and a weaker economic outlook,” Kan said. “However, rising inventory and slower home price growth could potentially bring some buyers back into the market later this year.” House prices are still well above last year’s levels, but fell by 0.77% from June to July. It was the first monthly decline in nearly three years, according to Black Knight, a mortgage software, data and analytics company. While the drop may seem small, it is the largest one-month price decline since January 2011. It is also the second-worst July performance dating back to 1991, behind the 0.9% drop in July 2010, during during the Great Depression. Given the recent volatility in mortgage rates, the gap between jumbo and conforming loans has widened again. Jumbos, which carried higher interest rates because of the size of the loans, are now 48 basis points lower than conforming loans. This spread exceeded 50 basis points in July. This is likely because jumbos are not backed by the government, which has a tighter risk tolerance, but are held on bank balance sheets. Banks are currently desperate for mortgage business.